Install Gems & set up tests to confirm

require 'spec_helper'
describe "ActiveRecord" do
it "is included" do
ActiveRecord.class.should == Module
end
it "has a schema file in config/database.yml" do
File.exists?(
File.expand_path("../config/database.yml",__FILE__)
).should == true
end
it "is connected to a database" do
ActiveRecord::Base.connection.class.
should == ActiveRecord::ConnectionAdapters::PostgreSQLAdapter
end
end

These tests were enough to tell me that Active record had what it needed and
was configured properly.

Setup config file

At app root I created a db directory containing a database.yml file, the
contents of which looked something like: